So you´ve seen that fabulous Spanish villa in the hills. You´ve been told that it was previously priced at €500,000 and you´re aware that it was ´recently´ valued at €450,000 It´s now on the market at €295,000 and the owners are desperate to sell. AN ABSOLUTE STEAL FOR THE PRICE! Too good to be true? Are we really about to buy a property in Spain for €295,000 that is actually worth €450,000? Possibly…..but highly unlikely. Before committing to the purchase and biting the hand off that convincing estate agent, let´s ask ourselves a few questions: -   When was it priced at €500,000? ANSWER: In 2007 (at the height of the Spanish property boom) -   When was the valuation done? ANSWER: In May 2008 (before the credit crunch and before prices began to crumble in Spain) Now that we have addressed those two issues, we have to work out what it is worth now – in today´s market. Clearly not €500,000 and nowhere near €450,000. Is it worth €400,000? Probably not. Is it worth €350,000? Tricky, but again it seems a little on the steep side. This is where it gets difficult. With prices going down, you have to assess how much the property is worth. To be honest, nobody is probably sure, so it rests with you to make that call – how much is that villa in Spain worth TO YOU? Maybe you think that €295,000 is a realistic asking price in today´s market, in which case can it really be called an ABSOLUTE STEAL? No…..it´s simply the right price for this particular property. So let´s stop getting excited about all this talk of discounts and bargain prices. It seems that the adjustments taking place in Spanish property pricing are simply leading us to a more sensible and accurate portrayal of a struggling market. Related Posts Easter Tradition in Spain – Prisoner Released in Holy Week The Spanish Christmas Lottery Saudi Yacht in Marbella - a true spectacle!
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The Sale of the Century in Spain….or maybe not!
They may be commonplace in the UK, but interest-only mortgages in Spain are surprisingly hard to find. You have to remember that the mortgage market here in Spain is years behind the markets in the UK and US (maybe not a bad thing!). Up until recently, there were no interest-only mortgages in Spain , and even now, if you mention a fixed rate option to banks in Spain , the advisers look at you like you have landed from Mars. The Spanish tradition is to take a standard repayment mortgage and to pay off your debt over the term of the loan – not a bad idea as it goes! But during turbulent financial times, customers are understandably trying to secure more flexible products. It seems to me that people still want to buy Spanish properties , particularly while prices are falling through the floor and interest rates are at an all-time low (euribor is currently around 1.7%), but most people are also fearful about their job security. The solution for most would be to retain access to a lump sum of cash in the event of unemployment or other economically-driven woes, to borrow as much of the purchase price as possible, and to reduce their monthly mortgage repayments, at least until we have emerged from the other side of this crisis. The ideal product for this scenario is a Spanish interest-only mortgage to cover as much of the purchase price as possible. Most interest-only mortgages in Spain are only available with a loan to valuation ratio of between 60% and 70%. Some banks will lend a similar percentage of the purchase price, particularly in the case of an inflated valuation. Spanish banks will also load the interest rate for an interest-only mortgage, so while most Spanish repayment mortgages attract a rate of around 1% over euribor (equating to around 2.7%), you can expect to pay anything between 1.2% and 1.5% above euribor (around 3% to 3.5%) for an interest-only option. But also beware that most interest-only options will only last for a fixed opening term (usually between 2 years and 10 years), and that some banks will have a minimum rate that they will charge, often around 3.5%, making some of these ´great rates´ redundant. Check the small print! Related Posts Mortgages in Spain – What´s on Offer? The Spanish Mortgage Market Economic Recovery Predicted in Spain
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Interest Only Mortgages in Spain
I noticed during a recent trip to England that you could barely travel a mile down the road without the intrusion of a speed camera. Speed cameras are relatively unused in Spain, although 2 were recently installed on the main coastal highway A7 on the Costa del Sol . For those planning a holiday on the Costa del Sol this summer, it may be handy for you to know that the first is located on the eastbound carriageway between the turnings for Puerto Banus and Nagueles (just before the tunnel), and the other is positioned on the eastbound carriageway just before the exit for La Cala de Mijas . What struck me most about the location of these speed cameras is that they are both on stretches of road on which it really takes some effort (or a VERY fast car) to actually reach the speed limit of 120kmh. In addition, there is also a warning sign about 500 metres before the camera, giving you at least an opportunity to slow down. I think these points highlight the key difference in how these cameras are used in Spain and in the UK. In Spain, they are clearly meant as a deterrent, whereas in the UK, their proliferation smacks of a money-making exercise. In fact, I am convinced that many accidents must be caused by anxious drivers looking out for speed cameras in the UK, and braking violently to avoid being zapped. Related Posts Speed Cameras in Spain England - the place gets worse! Travelling by Train in Spain
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Speed Cameras in Spain
I´m currently in the throes of obtaining a Spanish mortgage …..and what a tortuous process it is proving! I have approached several banks in Spain , and let me tell you, every single one will talk a good mortgage and promise the earth, but when it comes to the crunch, there´s not a lot of action. Like most things in life, success can often be dependent on the person that you are dealing with at the Spanish bank . My advice is to try to establish a good relationship with the representative from the bank. Most branches have thresholds that they can lend up to – for instance for residents in Spain, the branch lending threshold tends to be around €300,000 – also bear in mind that the first quote you receive won´t necessarily be the best. Don´t be afraid of negotiating better terms, and chipping away at the rate to try to secure a better mortgage in Spain . Also, if you have something to bring to the table, such as personal banking, deposit accounts etc, the bank is going to be far more likely to entertain you as a mortgage client. I found that most of the banks were offering me Spanish mortgages of up to 30 years, with interest rates varying between Euribor + 0.75 and Euribor + 1.45, depending if I acquired other bank products such as life insurance and payment protection etc. The higher end of the spectrum is usually reserved for interest-only mortgages in Spain , which are rare to find. I´m looking for a 60% loan to valuation (LTV), ideally interest-only for the first 3 years. I have cash savings, but would rather hang on to these reserves and lower my monthly outgoings, rather than lower my debt ratio and spend cash that may be needed during the current recession. Solbank have been the most helpful – there is a guy in the Elviria branch, Bernardo, who has been very good – switched on and commercially minded. Unfortunately, Solbank do not offer an interest-only facility, so I´ve also been looking at options with Lloyds TSB , who have a good product with an interest only option for the first 3 years, one of the very few banks to offer this facility. I´ll let you know which option I go for. Related Posts The Spanish Mortgage Market The Weak Pound – Tips for UK Buyers of Spanish Property – Part 2 Mortgages in Spain - Part 2
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Mortgages in Spain – What´s on Offer?
Sundays in Spain are special. Here on the Costa del Sol , the shops only open on a Sunday during August and the run-up to Christmas. Apart from those periods, the shops never open on a Sunday. This means that you have no other choice than to relax. There simply aren´t the temptations that exist in the UK to pop to the garden centre, the DIY store, the supermarket or the shopping mall. Here in Spain, the day is meant for the family to enjoy together. Most Spanish people detest working on a Sunday, no matter what the riches on offer. A friend of mine owns a restaurant in Puerto Banus , and she cannot get the Spanish staff to come to work on a Sunday, not for double-time, not for triple-time! The Spanish just don´believe in it. To them, Sunday is their day of rest, and that´s exactly what they do. Related Posts Virus - feeling sick in Spain Communal Living - Think About the Swimming Pools! Properties in Spain - A rage
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Sundays in Spain – a day of rest
I´ve just spent a really lovely day here in Marbella , a day that reminded me why I live here. After a fairly lazy breakfast this morning, I went for a dip in the community swimming pool and a 30 minute lie in the sun, reading a few chapters of a book. After a nice shower, I met friends at a beach bar in Marbella, where we shared a large jug of sangria and a fabulous paella while my friends´ kids played on the sand and paddled in the sea beside us.I followed this up with a leisurely walk along the beach in the 25 degree heat under a cloudless sky, and then grabbed the Sunday Times which I looked through this evening, before turning on my PC to do some work – the only downside in an otherwise perfect Mediterranean Sunday. Related Posts Marbella - how it´s changed in 7 years - PART 1 Sport in Spain El Corte Ingles – Spain´s flagship food hall??
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A Lazy Sunday in Marbella
gcruzpe asked: Voy a Madrid por 6 meses me pagan el alojamiento, cuantos euros debo pedir para mis otros gastos? es decir, comida, transporte lavanderÃa etc. etc. y que me sobre como para ir al cine , visitar lugares cercanos, y pasarla bien y sin estar corto de plata? Entra los mejores precios de vuelos a
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Voy a Madrid por 6 meses cuantos euros debo pedir para mis gastos?
Christmas, with Christmas comes children’s Christmas wish lists, with that, endless hours spent searching shops for something which you’ve never heard of but apparently have seen endless advertisements on the television for. This year all my youngest sons wish list said was CD Mixer Turntable or DJ Equipment. I was quite surprised at this, but
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Banging Sounds At Bargain Prices
A young man has been killed after being stabbed in the neck during a fight in Jumilla (Murcia), according to municipal sources. The alleged assailant has been arrested. At around 18:00, two men, apparently of North African origin, were seen to be fighting in Avenida Nuestra Senora de la Asuncion. One of the men drew a knife and stabbed the other fighter. When ambulances arrived, the young man was bleeding heavily from the neck and died at the scene. The Guardia Civil interviewed witnesses straight away, resulting in the arrest of the alleged assailant. Share this story:
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Stabbing in Jumilla results in death
Like all good news hounds, at the first report of a major fire which destroyed a huge DIY store in Torrevieja, we were quick to attend the scene to take photographs of the devistation to share with you. No doubt you will have seen the pictures and the story we posted about the fire at the Brico Housr DIY store in Torrevieja, but you MAY be surprised with what happened when we attended the scene! Now, let us be honest, all of the emergency services do an amazing job. They risk their own lives constantly to protect us and our property. Of course, once the adrenalin kicks in, they act with instinct and work hard for each and every one of us. But… Once the emergency is over and they can start to relax, how else can they entertain themselves? Well, for the group of fire fighters who attacked the blaze at the Brico House DIY store, they relaxed by almost forcing us to take photographs on one of the fire fighters getting changed! Or, to dress it up a little better, we were forced by a fire crew to take photographs of a stripping fireman!!!!! Obviously we didn´t want to, be we only aim to please. So, ladies, chaps, fire fighter fans, here is a real life firm fighter stripping off for you, in public!!! We do not want to do this, but we support our fire service, so we can only do what they ask! Share this story:
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Fireman stripper
